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Beat low interest rates with these dividend stars

Later today the Reserve Bank of Australia will meet for the first time this year to discuss the cash rate.

Unfortunately for savers, the central bank is widely expected to keep interest rates on hold at the record low of 1.5%. Furthermore, many are predicting that rates will stay on hold until late in the year.

Which means the paltry interest rates on offer from savings accounts are likely to be here for some time to come.

As a result, I think that savers ought to consider skipping savings accounts and putting their hard earned money to work in the share market.

Three top dividend shares which I would consider today are listed below:

Dicker Data Ltd (ASX: DDR)

Dicker Data is a leading wholesale distributor of computer hardware and software and a great option for income investors in this low interest environment. It provides investors with a generous trailing fully franked 5.8% dividend at present, which is paid to shareholders in quarterly instalments. Thanks to the addition of new vendors and strong demand from the cloud market, I believe Dicker Data will be in a position to increase its dividend in FY 2018.

Telstra Corporation Ltd (ASX: TLS)

Although this telco giant will cut its dividend down to just 22 cents per share in FY 2018, it is still a market-beating yield due to the sharp decline of its share price over the last 12 months. At present the yield on offer is almost a fully franked 6.1%. I think this is hard to say no to, especially given that the negative news flow appears to be out of the way now. I think that this could make it an opportune time to snap up shares.

WAM Capital Limited (ASX: WAM)

I think that WAM Capital is arguably the best listed investment company to invest in on the Australian share market. Thanks to the strong performance of its funds, WAM Capital has been able to raise its dividend for eight years in a row. Judging by its business performance so far this financial year, I suspect WAM will be in a position to raise its dividend for a ninth year in a row. At present WAM Capital’s shares provide investors with a trailing fully franked 6.2% dividend.

This fourth dividend share could be the pick of the lot. Do you own it?

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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